Anisotropic Conductive Film Market

Anisotropic Conductive Films Market Outlook (2023 to 2033)

The global anisotropic conductive films market is estimated to be valued at US$ 2.7 billion in 2023 and it is anticipated to grow at a CAGR of 6.2% to reach US$ 4.9 billion by the end of 2033.

Anisotropic conductive films (ACF) are lead-free and eco-friendly adhesive films used as interconnect systems in liquid crystal displays (LCDs). These adhesive films aid in establishing stronger, reliable connections, thereby preventing electronic device short circuits. This material is offered as an anisotropic conductive adhesive and anisotropic conductive paste (ACP) in addition to films (ACA).

Report Attributes	Details
Estimated Market Value (2023E)	US$ 2.7 Billion
Forecasted Market Value (2033F)	US$ 4.9 Billion
Global Market Growth Rate (2023-2033)	~6.2% CAGR
North America Market Share (2023)	~29.2%
East Asia Market Growth Rate (2023-2033)	~6.4% CAGR
Europe Market Growth Rate (2023-2033)	~6.1% CAGR
Key Companies Profiled	Showa Denko Materials Dexerials Corporation 3M H&S HighTech U-PAK AMADA WELD TECH PVA TePla America Henkal

Historic and Future Path for Anisotropic Conductive Film Market

ACF has applications in various electrical gadgets, such as cameras, mobile phones, and others. It is also used in diverse end-user industries, including healthcare, automobile, and aerospace, among others.

ACF technology is mostly used in flex-on-glass, flex-on-flex, chip-on-glass, flex-on-board, chip-on-board, and chip-on-flex, and for higher signal densities. Because of ACF benefits, such as being lead-free, recyclable, and having a low production cost, ACF is witnessing high demand and a wide range of applications.

• Short Term (2023-2026): The growing electronic industry is anticipated to create high demand for anisotropic conductive films in coming years as it is widely used for flat glass panels.
• Medium Term (2026-2029): Increasing demand from the automotive industry is projected to lift the anisotropic conductive films market as it is widely used for reducing weight, and improving vehicles’ overall performance.
• Long Term (2029-2033): Heavy investment by the manufacturing companies in the anisotropic conductive film market to develop innovative ACF to cater to the needs of the consumers and gain high-profit margins.

Market Dynamics Overview

“Plethora of Applications to Boost the Demand for Anisotropic Conductive Films”

Over the period, the use of anisotropic conductive films has increased rapidly from end-use applications such as televisions & monitors, smartphones & tablets, PCs & laptops, smart wearables, and many more electronic devices. The increasing use of electronics in both developed as well as developing countries is likely to boost the demand for anisotropic conductive films during the forecast period.

• The global electronics industry is valued at over US$ 750 billion in 2022 and is anticipated to grow at a moderate growth rate. The rise in disposable income of individuals is increasing, leading to growing consumer spending on electronic devices.

Governments across the globe are supporting the manufacturing and use of electronic devices and investing highly in the development of smart cities, better communication infrastructures, edu-tech, and others which are likely to create ample amount of growth opportunities for the ACF market.

• For instance, the Indian government 2018 released National Electronics Policy, to achieve a turnover of over US$ 400 billion from electronics manufacturing by the end of 2025.

These factors are likely to play a crucial role in the growth of the anisotropic film market. As ACF is widely used in the electronics industry, for display manufacturing and other purposes.

“High Cost of Manufacturing is Likely to Hamper Market”

Gold, nickel, and other conductive materials are used in the manufacturing of anisotropic conductive films. The high cost of these conductive materials is likely to have a negative impact on the growth of the anisotropic conductive films market. Manufacturers are also looking for substitute products that can provide similar properties to gold, nickel, and other types of metals.

Manufacturers are also, investing heavily in research and development activities for developing more advanced films. Manufacturers go through lots of tests to certify products before dispatching anisotropic conductive films from warehouses. This increases the inventory management cost of anisotropic conductive films. Storing and transportation at particular temperatures also increase production costs. Also, the low adoption rate in under-developed countries especially across African regions is likely to hamper the growth of the ACF market.

Country-wise Insights

Why the US Projects High Demand for ACF Market?

The US holds a significant market share in the electronic industry. The country has witnessed stable growth in the electronics industry over the past decade.

The US has the highest per capita health expenditure across the globe, which crossed US$ 11,000 in 2019. Increasing demand for medical devices that has monitors and displays in which anisotropic conductive films play a crucial role is likely to dominate the US market in the coming years.

Also, the country holds the position of the largest aerospace industry across the globe, with nearly 50% of the global share in 2018. This is likely to boost the demand for anisotropic conductive films in the US from the aerospace industry as it is widely used in the glass panel display, flex foils, and to create electrical conductive adhesives bonds between flexible and rigid circuit boards.

The US anisotropic conductive film market is anticipated to grow at a CAGR of 6.4% in the forecast period.

How Does Growth of Germany’s Automobile Industry Assist ACF Market?

Germany has become the automobile manufacturing hub over the decades. Which is likely to increase the demand for anisotropic conductive films in the coming years. The presence of leading automobile manufacturers such as BMW, Volkswagen, Daimler, Peugeot, and Renault are increasing their investment in research & development for creating lightweight, high-speed, and more automatic vehicles.

Also, the increasing demand for electric vehicles is anticipated to create high demand for anisotropic conductive films in the forecast period.

Furthermore, Germany is investing heavily in the healthcare and pharmaceutical industry which is helping to boost the demand for various types of films used in the medical sector. The German market is anticipated to grow at a CAGR of 6.3% between 2023-2033.

Category-wise Insights

Why Demand for ACF with Less than 1.25 mm Width is Growing?

Over the period, electronic devices are getting smaller and thin. The assembly process is getting more and more complex. This has created high demand for finer-pitch connectors, which require small-width anisotropic conductive films. This is anticipated to boost the demand for 1.25 mm width of anisotropic conductive films during the forecast period.

Which Application is Likely to Capture Maximum Market Share?

Smartphones & tablets are anticipated to capture the maximum market share in the anisotropic conductive film market. The global smartphone market is valued at over US$ 500 billion in 2022 and is anticipated to cross the mark of US$ 800 billion by the end of 2033. The increasing number of internet users is projected to bolster the demand for smartphones.

The global smartphone market is anticipated to show significant growth over the forecast period, as the trend of online shopping or e-commerce is increasing among individuals, especially the working class. The growing use of the internet, and marketing activities by smartphone vendors are some of the key factors for increasing demand for smartphones. This is anticipated to boost the demand for anisotropic conductive films as it is widely used in electronic devices for display screens.

Market Titans Key Strategies

Anisotropic conductive films market players are Showa Denko Materials, Dexerials Corporation, 3M, H&S HighTech, U-PAK, AMADA WELD TECH, PVA TePla America, Henkel, and 3T Frontiers.

Market leading players in the anisotropic conductive films market focus on establishing subsidiaries in developing nations to enhance their global presence. Manufacturers are also investing heavily in research and development for discovering new application areas of ACF and to gain high-profit margins. Companies are introducing adhesive films to support next-generation high-speed transmission such as 5G communication.

Fact.MR has provided detailed information about the price points of key manufacturers of anisotropic conductive films positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Anisotropic Conductive Film Industry Research

• By Film Width :

  • < 1.25 mm
  • 1.25-2.0 mm
  • 2.0 mm

• By Connection Type :

  • Chip-on-glass
  • Chip-on-flex
  • Chip-on-board
  • Others

• By Application :

  • Televisions & Monitors
  • Smartphones & Tablets
  • PCs & Laptops
  • Smart Wearables
  • Vehicle Displays
  • Others

• By End-Users :

  • Device OEMs
  • Repairers

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA